Court of Appeal finds employees can be made redundant if company downsizes due to business and economic circumstances

29 November 2023

Au Lai Chan & Anor v Malaysian Mosaics Sdn Bhd & Anor and another appeal [2023] MLJU 2161

The Malaysia Court of Appeal in Au Lai Chan & Anor v Malaysian Mosaics Sdn Bhd & Anor and another appeal held that a finding of redundancy is largely a
fact-sensitive exercise. Evidence of declining profits or company reorganisation (i.e. redistribution of remaining job functions) alone did not necessarily mean that there would automatically be a finding of redundancy. The court must undertake a thorough examination of all the relevant facts specific to the present case as opposed to relying on past cases.

This article by our associate firm in Malaysia, Rahmat Lim & Partners, provides an overview of the decision. To read the full article on the Rahmat Lim & Partners’ website, please click here.